Binance CEO, Changpeng Zhao, has denied allegations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB (BNB) token. Market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, have accused Binance of intentionally manipulating the market to inflate the value of BNB. Technical analysis platform Skew also accused Binance of manipulating the market through a series of trades involving BTC, BNB, and Tether (USDT). Analyst Joe Consorti from The Bitcoin Layer also described BNB’s price action as “unusual.”
Binance Denies Wrongdoing
In a tweet on June 13, CZ stated that Binance had not sold any of its or BNB and that the crypto exchange still held “a bag” of FTX Token (FTT). CZ added that it is amazing that market commentators can know who sold just based on a price chart involving millions of traders. Binance.US was sued by the United States Securities and Exchange Commission on June 5 for allegedly breaking securities laws in addition to engaging in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ. Binance.US and CZ have denied any wrongdoing and will “vigorously” defend the charges laid against them in the U.S. District Court in Washington, D.C.
Accusations of Wash Trading
Klippsten also alleged that Binance was engaging in “wash trading” and claimed that Binance is “trying to pretend” there’s support for BNB. Wash trading is a market manipulation tactic where a trader sells an asset and then buys it shortly after to inflate its demand or make it look like there’s more activity in the marketplace. Bitcoin analyst LeClair claimed that “BNB is clearly a fake market,” trading with less realized volume than BTC. Consorti suggested that $220 level may be a liquidation level for a BNB-collateralized loan. In response to CZ’s post, Consorti asserted that Binance should publish an audited statement proving that Binance has no BNB-collateralized liabilities in order to end the “FUD.”
Binance CEO Changpeng Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB (BNB) token. CZ has denied allegations that Binance has been intentionally manipulating the market to inflate the value of BNB. Market commentators have also accused Binance of engaging in wash trading and manipulating the market through a series of trades involving BTC, BNB, and Tether (USDT). Binance.US and CZ have denied any wrongdoing and will “vigorously” defend the charges laid against them in the U.S. District Court in Washington, D.C.